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The republic recognizes two official languages: French and Arabic. However, Somali is the most widely spoken language, although it is rarely written and is not taught in the schools. The use of Afar is mostly restricted to Afar areas. Many Djiboutians are multilingual.
Fluency in French is particularly important for those with political aspirations. French is the means of instruction in primary and secondary schools, although Arabic is also taught as the first language at both these levels.
Religion
More than nine-tenths of the population is Muslim; nearly all adhere to the Sunni branch of Islam. Some Christian religions are represented in Djibouti, including Eastern Orthodoxy and Roman Catholicism.
Settlement patterns
Djibouti is virtually a city-state, since about two-thirds of the population lives in or near the capital. Outlying towns are small trading centres that experience periodic population increases as camel caravans and sheep and goat herders encamp.
Demographic trends
Djibouti is the most urbanized country in sub-Saharan Africa, with nearly four-fifths of the population classified as urban. The annual rate of population increase is higher than the world average but has dropped significantly since the 1980s. Nearly one-third of the population is under age 15, and almost one-third is between the ages of 15 and 29. The average life expectancy is about 66 years for women and about 61 years for men.
Both the Afar and the Somali maintain ties with relatives living in neighbouring Eritrea, Ethiopia, and Somalia. Since independence, many newcomers from rural areas and regions beyond the national frontier have migrated to live with family members in Djibouti city.
Djibouti is host to a considerable number of refugees. In addition to thousands of economic migrants who, on an ongoing basis, clandestinely enter Djibouti and illegally assume a variety of jobs (usually in Djibouti city), the country periodically has been inundated with waves of refugees fleeing political persecution in neighbouring countries.
Economy
Djibouti has few natural resources and has limited capacity for agricultural and industrial pursuits; the country also has extensive unemployment, foreign debt, and regular budget deficits. The government continues to focus on financial-, telecommunications-, and trade-related services, solidifying the country’s position as an important regional business and trade hub in the Horn of Africa. As a result, the economy relies heavily on the service sector, which accounts for some four-fifths of the country’s gross domestic product.
Agriculture, forestry, and fishing
Because of Djibouti’s harsh landscape and limited areas of arable land, agriculture is not a viable economic sector and is largely practiced at subsistence level only. In rural areas, nomadic pastoralism is a way of life. Sheep and goats are raised for milk, meat, and skins, while camels are used for transport caravans. Agriculture there is confined to a few wadis, which produce small yields of vegetables (mostly tomatoes) and dates.
Forests account for less than 1 percent of Djibouti’s total land area. Much of the country’s limited forest cover has long been exploited for grazing and firewood.
Offshore, Djibouti’s waters teem with many species of marine life, including tuna, barracuda, and grouper. The government has sponsored experimental fisheries projects and has succeeded in producing small marketable yields of fish products. However, many Cushitic peoples in the region do not consume fish, and this factor has limited development in this area.
Resources and power
Djibouti has few natural resources. Salt is exploited—some is exported, and some is marketed through the informal sector of the economy. Efforts to exploit the country’s vast potential for geothermal energy are under way but have yet to yield substantial results. Virtually all the country’s electricity is generated by fossil fuels.
Manufacturing
Because of limited development in the manufacturing and industrial sectors, Djibouti is heavily reliant on the import of consumer products. Despite liberal investment laws and Djibouti’s status as a free-trade zone, high labour and energy costs, an extremely small domestic market, and regional instability have hindered the attraction of foreign investors. The government traditionally has sought to overcome this handicap by launching parastatals (government-owned enterprises) in specifically targeted industries, such as a mineral-water-bottling plant at Tadjoura and a dairy plant outside Djibouti city. It has also attempted to exploit significant geothermal activity in the hopes of making the country energy self-sufficient. However, the parastatal sector was plagued by inefficiency and the need for significant budget subsidies. Since the mid-1980s the government has worked toward the privatization of these companies in an attempt to increase profit and productivity. In 1996 these efforts were further expanded as part of a structural-adjustment program sponsored by the International Monetary Fund and the World Bank.
Finance and services
The Central Bank of Djibouti issues the Djiboutian franc, the national currency, which is pegged to the U.S. dollar at a fixed parity. There are several commercial banks, development banks, and insurance companies in the country, most of which are located in Djibouti city.
The country is a popular business and finance centre in the region, as its banking and finance laws tend to be less restrictive than those of other countries. Subsequently, foreign businesspersons, particularly those from neighbouring countries, have utilized Djiboutian banks as financial havens for investment capital and as centres for generating import transactions in order to avoid the more regulated banking systems of their respective countries. The quality of the country’s telecommunication services also benefits the business sector.
Trade
Since 1982 Djibouti has suffered from an overall trade deficit. Because of limitations in the agricultural and manufacturing sectors, the country must import almost all goods intended for final consumption. Imports include food and beverages, machinery and transportation equipment, electric appliances, and petroleum products. Exports include aircraft parts, animal hides and skins, and live animals. Many goods listed as exports are reexports destined for neighbouring countries. Important trading partners include India, Ethiopia, the Persian Gulf states, and China.
A darker side of Djibouti’s trade habits concerns its daily importation from Ethiopia of the mild narcotic known as khat (qat; Catha edulis). This item of trade, which is managed by a government-sanctioned private syndicate, constitutes a sizable part of Djibouti’s total imports. The Djiboutian government continues to support the khat trade because it is estimated to employ as much as almost one-tenth of the country’s working population and contributes to a windfall in government revenue through taxes.
Labour and taxation
Djibouti’s high unemployment rate—estimated to be anywhere from almost three-fifths to more than four-fifths of the country’s workforce—is further exacerbated by the thousands of illegal migrants who go to Djibouti and are willing to accept subminimum wages.
Tax revenue in Djibouti funds more than half the annual budget. Sources of revenue include indirect taxes, direct taxes, transit taxes, and harbour dues and related fees.
Transportation and telecommunications
Djibouti’s title as a regional trade hub is built upon its modern international port and the Djibouti–Addis Ababa railway. There is also much unrecorded transshipment, via camels, dhows, and trucks, to bordering countries.
Djibouti’s road network comprises about 2,000 miles (3,000 km) of roads, of which less than half is paved. Primary routes include a paved road linking Tadjoura and the north with the capital, and the Grand Bara road, which links the capital with the south.
The Djibouti–Addis Ababa railway was historically an important source of revenue for Djibouti. Built in the early 20th century, it was jointly owned by the governments of Djibouti and Ethiopia and was upgraded with the financial support of the European Union. Despite these improvements, however, the line continued to deteriorate, affecting both passenger and freight traffic. Eventually the railway fell into disuse, but a new electrified rail line was built parallel to the existing track. Financed largely by the Export-Import Bank of China, the $3.4 billion project was completed in October 2016. Capable of accommodating freight trains at speeds of up to 75 miles (120 km) per hour and passenger trains at speeds of up to 100 miles (160 km) per hour, the electrified rail line promised to greatly reduce the transit time between Addis Ababa and Djibouti city.
The port of Djibouti is a free-trade zone with modern container and refrigeration facilities and a rail link to Ethiopia. The international port provides capabilities for bunkering and the transshipment of goods to other countries in the region. Attempts at diversification—including the construction of new container terminals, the refurbishment of docking berths, and the inauguration of a new port with a deepwater container facilities and an oil and gas terminal at nearby Doralé—have centred on capturing a larger share of the worldwide transshipment of goods along the Red Sea and Gulf of Aden.
Djibouti has several small airports throughout the country that provide access to domestic air service. There is an international airport located at Ambouli, near Djibouti city.
Djibouti’s international telecommunications services are some of the best in sub-Saharan Africa, designed to support the country’s position as a financial and business hub. An earth station links Djibouti to the Arab Satellite Communication Organization (Arabsat). Djibouti is also linked to the submarine South East Asia–Middle East–Western Europe–3 (SEA-ME-WE-3) telecommunications system.
With regard to personal communication, mobile phone use is far more prevalent than landline use and continues to increase. Internet usage outside the business realm is limited but growing.
Government and society
Constitutional Framework
Djibouti did not adopt a constitution until 1992, 15 years after having achieved independence. Prior to that the country was governed by nine constitutional articles that had been adopted in 1981. Under the constitution the president, who serves as head of state and head of government, is elected by universal suffrage for a term of five years, without any limitation on the number of terms served. The president nominates and is assisted by a prime minister. The National Assembly is the legislative arm of the government and comprises 65 members who are presided over by the prime minister. Assembly members are elected by universal suffrage for a period of five years. A constitutional amendment in 2010 provided for the creation of a Senate, although one was not immediately established.
Local government
The country is divided into six administrative units: five régions (Ali Sabieh, Arta, Dikhil, Tadjourah, and Obock) and Djibouti city.
Justice
The judiciary is divided into three separate court systems. A customary court system maintains a trial level in Djibouti city and each region, as well as an appellate level in Djibouti city. These courts are responsible only for civil matters. A second court system, based on Sharīʿah, deals with family matters that fall under the jurisdiction of the Islamic faith. Although presided over by a kadi (a Muslim judge), this system is similar to the customary court system in that it includes both trial and appellate levels. The third court system is Western in origin, heavily patterned after the French judicial system. The Supreme Court constitutes the top court of appeals for this system. Its jurisdiction includes appeals from both the customary and Sharīʿah court systems.
Political process
From 1981 until 1992 Djibouti had a single-party system, with the Popular Assembly for Progress (Rassemblement Populaire pour le Progrès; RPP) being the sole legal party. During this time deputies to the National Assembly could be elected only from a list supplied by the RPP; abstention from voting was the only legal form of opposition.
The 1992 constitution officially inaugurated a multiparty political system that authorized competition between four political parties. Although it was a significant departure from the single-party rule of 1977–92, critics noted that Djibouti largely remained a de facto single-party political system, with the ruling party maintaining wide powers. In 2002 the restriction on the number of parties was lifted, allowing for the creation of many new legally recognized political parties.
Women and minorities are able to participate in the political process, although representation tends to be disproportionate. In the mid-2000s, women held one-tenth of National Assembly seats. Women have also served in cabinet positions and as president of the Supreme Court. Minorities have held National Assembly seats as well as a number of cabinet positions.
Security
Djibouti’s army and security forces fall under the direct control of the president as commander in chief. The Djiboutian Armed Forces comprise army, navy, and air force contingents as well as a National Security Force; the army is by far the largest branch. There are also paramilitary forces. Djiboutian forces have participated in missions as United Nations Peacekeeping Forces.
Djibouti also hosts international forces. France has long had a military presence in the country stemming from when Djibouti was a French colony. In the wake of the September 11 attacks in the United States in 2001 and the subsequent international campaign to combat further acts of terror, the Djiboutian government has allowed the United States to station troops in the country. Germany also has a small number of troops stationed in Djibouti.
Health and welfare
Historically, Djiboutians on average have been better off than the populations of their immediate neighbours. There are still problems, however. Many Djiboutians live in poor housing with inadequate water and sanitation. The infant mortality rate is high because of diarrhea, acute respiratory infections, malaria, and nutritional deficiencies. For the general population, tuberculosis is a major health problem, as are other respiratory diseases, diarrhea, and HIV/AIDS. About four-fifths of the country’s population has access to health care; that figure is considerably lower in rural areas. Djibouti city has a hospital and several primary care clinics, and local dispensaries serve the rural areas.
The widespread chewing of khat in Djibouti presents some health and societal problems. There is the obvious issue of physical side effects associated with prolonged usage that have a negative impact on one’s health. Some studies have indicated that most adult male Djiboutians spend more than five hours a day chewing khat, with the country’s high level of unemployment thought to be partially to blame for the pervasive habit. There is also a problem with khat usage by the portion of the Djiboutian workforce that is gainfully employed, as it is widely recognized that use of the drug severely hinders labour productivity.
Education
Six years of primary education begin at age six. This is followed by seven years of secondary education that begin with a four-year cycle and continue with an additional three-year cycle. Although efforts have been made to increase school enrollment and attendance, it is estimated that fewer than half of primary-school-age children obtain an education. The University of Djibouti (2006) offers undergraduate and postgraduate programs. More than two-thirds of the adult population is literate.
